Where does EPFO invests your money?

Feb 14, 2023 Rajeev Kumar

Employees’ Provident Fund Organisation (EPFO) is managing funds worth over Rs 11 trillion and has millions of subscribers. Let’s look at where it invests your money Employees’ Provident Fund Organisation (EPFO) is managing funds worth over Rs 11 trillion and has millions of subscribers. Let’s look at where it invests your money

No exposure to Adani Group

Employees’ Provident Fund Organisation (EPFO) has no direct exposure to the Adani Group either on the equity or the debt side. Employees’ Provident Fund Organisation (EPFO) has no direct exposure to the Adani Group either on the equity or the debt side.

Where is EPFO money invested?

18% of EPFO funds are invested in Central Govt securities, 42.7% in sate development loans, 5.1% in bonds of private sector companies and 9.24% in ETFs. 18% of EPFO funds are invested in Central Govt securities, 42.7% in sate development loans, 5.1% in bonds of private sector companies and 9.24% in ETFs.

The EPFO does not have direct play in equities but only invests in exchange traded funds. The EPFO does not have direct play in equities but only invests in exchange traded funds.

For the last few years, EPFO has stopped investing in corporate bonds by private companies after the default by ILFS in 2018. For the last few years, EPFO has stopped investing in corporate bonds by private companies after the default by ILFS in 2018.

EPFO can invest up to 5% of its annual incremental deposits in commercial paper of corporates. EPFO can invest up to 5% of its annual incremental deposits in commercial paper of corporates.

EPFO can also invest between 5% to 15% of its annual incremental deposits in equities and related investments, and prefers to invest in ETFs. EPFO can also invest between 5% to 15% of its annual incremental deposits in equities and related investments, and prefers to invest in ETFs. See Next